Signs the AZ Housing Market is Slowing Down Quickly
We are seeing signs our housing market is pointing towards a "softening". We aren't talking a crash...just a housing market that is more balanced. There are a number of reasons we are seeing this shift. First, demand is weakening as a result of increasing home prices and mortgage interest rates which has eliminated a number of buyers from the market. In addition, there is a lot of uncertainty about the economy causing buyers to adopt a wait-and-see attitude. In conjunction on the sales side, many current home owners have decided to cash in on the frenzy and have recently put their homes up for sale causing supply to increase at a fast rate across most market segments. The effect is most noticeable in the price ranges from $500,000 to $2,000,000.
For Greater Phoenix, single-family detached non-distressed listings without a contract:
Active listings priced between $500K and $600K have risen from 477 to 1,049 in the last 2 months (120%)
Active listings priced between $600K and $800K have risen from 546 to 1,111 in the last 2 months (103%)
Active listings priced between $800K and $1M have risen from 259 to 519 in the last 2 months (100%)
Active listings priced between $1M and $1.5M have risen from 209 to 468 in the last 2 months (124%)
Active listings priced between $1.5M and $2M have risen from 91 to 194 in the last 2 months (113%)
The rise in supply is quite modest for homes priced over $3 million or under $500,000. For years buyers have been crying out for more supply. Their wish is finally coming true. In the last 7 days we saw more than 3,000 listings added to the ARMLS residential database for the first time since 2010. With demand dropping below normal, this torrent of new listings is growing our active inventory at the fastest rate since 2005.
At this moment... we are still in a sellers market, but for how long...we don't know. If you have been waiting for the right time to sell, you might want to do it sooner rather than later. We are happy to answer any questions you may have about the market...please don't hesitate to reach out to us.